We all want to improve the balance in our bank accounts, so for this new year it is worth going over the bases to build better finances

Personal finances are really a fundamental issue in our lives. The good management of them determines, in part, our life quality. We cannot deny that if we want to have a life without financial burdens and, of course, without the stress that this generates, it is an essential requirement to learn to manage our money well.

In addition, finances accompany us all our lives, before we are born and even after we die, or at least Sofía Macías Aguilar claims that in her book Pequeño Cerdo Capitalista. So, to have a proper personal economic management depends on the difference between having good monetary solvency throughout the year, or always being worried because you don’t have enough money to pay for your monthly expenses.

Therefore, taking advantage that 2019 starts today, we give you some tips that could help you better order your finances, have an excellent economy and, therefore, greater economic well-being in this new year.

1. Learn to save

Most of us are not taught to save, many Latin Americans do not have in our "DNA" the culture of saving. In fact, according to the IDB, only 18% of the population saves. However, that is no excuse for not learning to do it, even if it requires time and effort.

Saving can help you meet your goals. It is sacrificing yourself today to have a better tomorrow. Sergio Fernández, author of Vivir con abundancia (Living with abundance), affirms that it is necessary to allocate a monthly percentage of our total income to a savings fund (between 15% and 20%) depending on age.

On the other hand, saving at banks is good, but there are also other savings and investment alternatives that can help you have greater profitability.

2. Invest

Investing in stocks can be a good option, you can also do it in CIMAs or currencies. For the most risky, you can invest in cryptocurrencies. Remember that investing in stocks is not something that is reserved only for big business. What it is necessary is that you advise very well with an expert on the different options offered by the financial and real estate market.

3. Do not acquire debts

We usually think, many times thanks to the media and publicity, that to get goods such as a car or a house, the most appropriate solution, if we do not have the money, is a credit, that is, to get into debt. However, some experts say that getting into debt is just mortgaging our future, so they recommend not doing it. If you already acquired a debt, it is best to pay it as soon as possible.

Do not spend more than you earn. Increase your money or spend less. If you have credit cards, learn to use them, on the contrary, if you cannot make good use of them, eliminate them.

5. Have a financial cushion

A financial cushion consists of having a saving that provides you at least to pay 1 or 2 years of expenses. This means having saved to be able to pay at least 1 year of your expenses in case you do not have any income during that period. This savings will allow you to live comfortably and without economic worries, at least for this period of time.

6. Make an annual budget

Experts also recommend projecting us in annual terms, not monthly, to record income and expenses to know how much money comes in and out of your cash flow.

7. Search for different sources of income

Some experts like Raimón Samsó, author of the book El código del dinero (The money code), argue that in order to have higher incomes it is necessary to diversify the sources of income and each year to increase them. That is, collecting sources of income, having a main source and several different sources.

It is not enough just to get income for a fixed job that requires your presence (income actively earned) it is necessary to look for other sources of money (passively earned income) that initially require your presence, but then not. You can also make investments that do not require your presence.

We know that it is not easy, but to achieve greater economic well-being we must start by changing those bad money habits. These lead us to take incorrect and irresponsible financial decisions; additionally, they do not allow us to achieve our financial goals.

9. Find financial information and get advice from experts

In order to have greater economic well-being, it is necessary to have a solid financial education or seek help from an expert who gives us good advice.